Dublin San Ramon Services District to Limit Free Speech
Committee Members: R. Halket G. Vonheeder-Leopold D. Scannell (alt.) AGENDA DUBLIN SAN RAMON SERVICES DISTRICT FINANCE COMMITTEE MEETING DSRSD Board Conference Room 7051 Dublin Boulevard Dublin, CA 94568 Monday, December 12, 2011 5:30 p.m. Public Comment: At the start of the meeting, audience members are encouraged to address the Committee on any item of interest that is within the subject matter jurisdiction of the Committee and not already included on the agenda. Comments should not exceed five minutes. All speakers shall introduce him/herself, and then proceed with his/her comment. ITEM ATT. REFERENCE ACTION ANTICIPATED TIME ** Public Comment * Discussion Items D-1 Agenda Management* (consider order of items) D-2 Cogeneration Electrical Steve Delight Discussion 10 min Improvements and Service Relocation (CIP 22CI276): Potential to Exceed Change Order Contingency D-3 Proposed Proposition 218 Policy for District Discussion 10 min Submission and Tabulation of Secretary Written Protests D-4 Accept Financial Statements for Financial Discussion/ 20 min June 30, 2011 with Independent Services Refer to Board Auditors Report Manager D-5 Committee/Staff Comments Committee/ Informational/ 5 min Staff Discussion D-6 Meeting Schedule: Committee Discussion 5 min January 9 – 5:30 p.m. Informational Items – (No Discussion Unless Requested by Committee) I-1 Water Conservation (Permanent Sue Stephenson Informational Reduction) – Valley Christian Urinal Replacement (CIP 09-6102) I-2 Review of Board Expenses General Informational Manager Approval/Date * Standing Items ** Relative time anticipated by Staff for discussion of item; guideline only. All materials made available or distributed in open session at Board or Board Committee meetings are public information and are available for inspection at the front desk of the District Office at 7051 Dublin Blvd., Dublin, during business hours, or by calling the District Secretary at (925) 828-0515. A fee may be charged for copies. District facilities and meetings comply with the Americans with Disabilities Act. I f special accommodations are needed, please contact the District Secretary as soon as possible, but at least two days prior to the meeting.
ITEM D-3 MEMORANDUMDATE: December 8, 2011TO: Finance CommitteeFROM: Nancy Gamble Hatfield, District SecretarySUBJECT: Proposed Proposition 218 Policy for Submission and Tabulation of Written ProtestsAttached is a draft policy regarding the Submission and Tabulation of Written Protests. In responseto Proposition 218 that sets forth certain procedural requirements prior to adjusting utility charges,staff developed some preliminary concepts that could better guide the protest process in the future.Ideas from other agencies’ guidelines and policies were gathered and are the basis for the proposedpolicy. District General Counsel has also briefly reviewed the materials and is familiar with similarpolicies from other agencies. The objective of the discussion is to determine if a protest policy isappropriate and to seek further input from the Finance Committee on this topic.H:CommitteeFinance12-12-11STAGING FOLDERD3-1 Proposition 218 - policy for submission and tabulation memo.docx
RESOLUTION NO. _____RESOLUTION OF THE BOARD OF DIRECTORS OF DUBLIN SAN RAMON SERVICESDISTRICT ADOPTING POLICY FOR THE SUBMISSION AND TABULATION OFWRITTEN PROTESTS IN CONNECTION WITH RATE HEARINGS CONDUCTEDPURSUANT TO ARTICLE XIII D OF THE CALIFORNIA CONSTITUTION WHEREAS, Proposition 218 (Section 6 of Article XIII D of the California Constitution)requires the District to comply with certain substantive and procedural requirements prior toimposing or increasing utility charges, which include the consideration of written protests to suchincreases; and WHEREAS, this policy has been drafted to implement the requirements Section 6 ofArticle XIII D of the California Constitution and Government Code sections 53750 et seq.; and WHEREAS, the Board of Directors finds that an owner or tenant-customer of a parcelreceiving a property-related service may, after receiving notice of a proposed increase in a fee orcharge, submit a written protest to the proposed increased fee or charge; and WHEREAS, Proposition 218 requires that all written protests be considered and at apublic hearing for which a minimum notice of 45-days has been provided; and WHEREAS, Article XIII D of the California Constitution and Government Code sections53750 et seq. do not provide appropriately documented methods for sending notices, countingwritten protests, and other related processes, and this creates ambiguity for District staff,customers, and the general public, concerning these issues; and WHEREAS, it is a best practice to set forth guidelines for the submission and tabulationof written protests for proposed changes to utility charges consistent with Article XIII D of theCalifornia Constitution and Government Code sections 53750 et seq.; and WHEREAS, requiring that a written protest be signed by the owner or tenant-customerwould allow validation in the event of a challenge or suspected irregularity. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OFDUBLIN SAN RAMON SERVICES DISTRICT, a public agency in the counties of Alamedaand Contra Costa, California that the attached policy for the “Submission and Tabulation ofWritten Protests,” attached as Exhibit “A” is hereby adopted.H:CommitteeFinance12-12-11STAGING FOLDERD3-2 Proposition 218 RESOLUTION - Draft_Legal RVV_11-17-11_rvv.docx DRAFT
Res. No. ______ ADOPTED by the Board of Directors of Dublin San Ramon Services District, a publicagency in the State of California, counties of Alameda and Contra Costa, at its regular meetingheld on the _____ day of ______________20( ), and passed by the following vote: AYES: NOES: ABSENT: ____________________________________ Richard M. Halket, PresidentATTEST: ______________________________ Nancy G. Hatfield, District SecretaryH:CommitteeFinance12-12-11STAGING FOLDERD3-2 Proposition 218 RESOLUTION - Draft_Legal RVV_11-17-11_rvv.docx DRAFT 2
EXHIBIT A POLICY SUBMISSION AND TABULATION OF WRITTEN PROTESTSIt is the policy of the Board of Directors of Dublin San Ramon Services District:Submission of Written Protests• Any record property owner and or tenant-customer of a parcel receiving a property-related service may submit a written protest to the Secretary of the District at 7051 Dublin Boulevard, Dublin, CA 94568, either by delivery to the District Secretary’s Office or by submitting the written protest at the public hearing. Written protests must be received prior to the close of the public hearing.• The Board welcomes input from the community at any time, including during the public hearing on the proposed charges, but only written protests will be counted as formal protests.• A valid written protest must identify the affected property by assessor’s parcel number or by street address, including the original signature of the record property owner or tenant-customer, and may not be altered by anyone other than the signatory. Mailed written protests should note on the envelope: “Sewer Service or Water Charge Protest” so as to help ensure proper handling when received by the District.• Written protests may be submitted by personal delivery or U.S. mail. Postmarks will not be accepted as evidence of timely delivery. Email and facsimile protests will not be accepted. Any written protest not actually received by the close of the public hearing, whether or not mailed prior to the hearing, shall not be counted.• Only one written protest will be counted per parcel. If signed written protests are received from both the property owner and tenant-customer, only one written protest will be counted. If a parcel served by the District is owned by more than a single record owner, each individual owner may submit a written protest, but only one written protest will be counted per parcel and any oneH:CommitteeFinance12-12-11STAGING FOLDERD3-2 Proposition 218 RESOLUTION - Draft_Legal RVV_11-17-11_rvv.docx DRAFT 3
written protest submitted in accordance with these rules will be sufficient to count as a protest for that parcel.• Any person who submits a written protest may withdraw it by submitting to the Secretary of the District a written request that the protest be withdrawn but this withdrawal must be done before close of the public hearing. The withdrawal of a written protest shall contain sufficient information to identify the affected parcel and the name of the record owner or tenant-customer who submitted both the written protest and the request that it be withdrawn.• To ensure transparency and accountability in the protest process, written protests shall be maintained in confidence from their receipt until disclosure of the number of protests at the public hearing, at which time they shall become disclosable public records.Tabulation of Written Protests• The Secretary of the District shall determine the validity of all written protests. The Secretary shall not accept as valid any written protest if the Secretary determines that any of the following conditions exist: o The protest does not properly identify by assessor’s parcel number or by street address a property served by the District. o The protest does not bear the original signature of the record owner or tenant-customer of the parcel identified on the protest. o The protest does not clearly state its intent to be a protest to the proposed charges or does not apply to a specific charge. o The protest was not received before the close of the public hearing on the proposed charges. o A request to withdraw the protest is received prior to the close of the public hearing on the proposed charges.H:CommitteeFinance12-12-11STAGING FOLDERD3-2 Proposition 218 RESOLUTION - Draft_Legal RVV_11-17-11_rvv.docx DRAFT 4
o The protest was altered by someone other than the record owner or tenant-customer whose signature appears on it.• At the conclusion of the public hearing, the Secretary shall complete the tabulation of all written protests received and shall report the results of the tabulation to the Board of Directors upon completion.• If tabulation of the written protests received demonstrates that the number received is less than one-half of the parcels served by the District with respect to the charge which is the subject of the protest, then the Secretary shall advise the Board that there is an absence of a majority protest and therefore there is no need to determine the validity of each individual written protest. For the purposes of this provision, all written protests will be considered validly submitted.• If tabulation of the written protests received demonstrates that the number received is greater than one-half of the parcels served by the District with respect to the charge which is the subject of the protest, then the Secretary shall advise that a validation of the written protests is required and when that validation will be completed.• The Secretary of the District’s determination that a written protest is not valid (or does not apply to a specific charge) shall constitute a final action of the District and shall be appealable only to the Board of Directors.• A majority protest exists if valid written protests are timely submitted and not withdrawn by the record owners or tenant-customers of a majority of the parcels subject to the proposed charge, a majority being equal to fifty (50) percent plus one (1).H:CommitteeFinance12-12-11STAGING FOLDERD3-2 Proposition 218 RESOLUTION - Draft_Legal RVV_11-17-11_rvv.docx DRAFT 5
Agenda Item D-4 Dublin San Ramon Services District Summary & RecommendationReference Type of Action Board Meeting of Treasurer Accept Financial Statements December 20, 2011SubjectAccept Financial Statements for June 30, 2011 with Independent Auditors Report Motion Minute Order Resolution Ordinance Informational OtherREPORT: Verbal Presentation Staff L. Rose Board MemberRecommendation:The Treasurer recommends that the Board accept, by Motion, the Financial Statements for June 30, 2011 withIndependent Auditors’ Report.Summary:Maze and Associates has audited the financial statements of Dublin San Ramon Services District. Their audit report ofthe District’s Basic Financial Statements for the Year Ended June 30, 2011 is attached. The financial statements show thewater and sewer enterprises as a whole with supplementary statements showing each of the District’s funds individually.These individual fund statements give a better picture of how each of the District’s enterprise (or operations) funds didover the last year. Their performance is summarized below:Operating Fund Performance for Fiscal Year Ending June 30, 2011 Sewer Sewer Collection Treatment WaterOperating Revenues 1,907,330 15,398,133 18,624,500Non-Operating Revenues 3,886 29,758 39,918 Revenues 1,911,216 15,427,891 18,664,418Operating Expenses 2,395,646 16,697,954 18,618,858Less Depreciation (1,075,374) (3,731,346) (3,540,981)Plus Replacement Transfer 601,796 1,948,000 2,306,000 Expenses 1,922,068 14,914,608 17,383,877Increase (Decrease) in Reserves (10,852) 513,283 1,280,541The Memorandum on Internal Control is also attached which contains no current year findings. Committee Review Legal Review Staff Review COMMITTEE DATE RECOMMENDATION ORIGINATOR DEPARTMENT REVIEWED BY Finance 12/12/2011 Approve Not Required L. Rose Fin Serv ATTACHMENTS None Resolution Minute Order Task Order Staff Report Ordinance Cost Funding Source Attachments to S&R$0.00 A. 1. Financial Statements for June 30, 2011 with Independent B. Auditors Report 2. Memorandum on Internal Control and RequiredH:CommitteeFinance12-12-11STAGING FOLDERD4-1 Audit S&R.docx Communications 3.
Item I-1 Memo November 29, 2011To: Finance Committee Meeting Date: December 12, 2011From: Sue StephensonSubject: Water Conservation (Permanent Reduction) – Valley Christian Urinal Replacement (CIP 09-6102)Budget Accountability policy P400-11-2 allows budget adjustment of CIP projects to beapproved by the General Manager up to a cumulative maximum of $100,000. The WaterConservation (Permanent Reduction) – Valley Christian Urinal Replacement project (CIP 09-6102) required an increase of $4,561 to its budget which qualified within this policy.The policy requires that a CIP budget adjustment approved by the GM be reported to the FinanceCommittee at the next regularly scheduled meeting. Therefore, this memo is being submitted toinform the Finance Committee of the recently approved CIP budget increase for the project.The project was a joint effort with Zone 7. Zone 7 paid for the materials and the District paid forlabor. Staff time expenses were a little more than anticipated which resulted in $4561 overbudget. The project was completed in July 2011 and the budget adjustment will erase thenegative balance so that it can be closed in the District’s accounting system. This small increasewill not affect the Water Expansion fund limit.For further details, please see the attached GM Approval Form for CIP Budget Increase Request.Attachments:1) GM Approval Form for CIP Budget Increase Request2) Revised Budget SheetH:CommitteeFinance12-12-11STAGING FOLDERI-1 09-6102 FIN Memo for GM Approved Budget increase.doc
Item I-2 November Budget Variance Report Expected Expense: 41.67% Categories are flagged if Actual Expense % > Target Expense % Tolerance Level: 3.00% Accounting Period: 5 (Target Expense % = (Period/12)*100 + Tolerance %) Accounting Year: 2012 Target Expense: 44.67%Division: 10. Legislative 2012 YTD MTD % of YTD to Flag Adjusted Budget Expenditure Expenditure Budget Employee Memberships & Certifications 0.00 0.00 0.00 0.00% Medical 34,589.70 13,800.00 2,760.00 39.90% Other Benefits 9,767.75 3,972.29 796.99 40.67% Retirement 4,126.92 1,332.58 276.86 32.29% Salaries 56,160.00 17,742.00 3,504.00 31.59% Salary / Benefit Credit 0.00 0.00 0.00 0.00% Training Costs 7,500.00 3,115.83 635.00 41.54% 1. Personnel 112,144.37 39,962.70 7,972.85 35.64% Office Supplies 3,800.00 160.33 0.00 4.22% 2. Materials and Supplies 3,800.00 160.33 0.00 4.22% Advertising 0.00 0.00 0.00 0.00% Other Services 20,457.00 1,955.00 115.00 9.56% Professional Services 31,000.00 24,156.25 3,595.00 77.92% FLAG Telephone Service 0.00 11.82 0.00 0.00% FLAG 3. Contract Services 51,457.00 26,123.07 3,710.00 50.77% FLAG Meetings 700.00 124.00 0.00 17.71% Permits, Licenses & District Mbrshps 0.00 0.00 0.00 0.00% Subscriptions & Publications 0.00 0.00 0.00 0.00% 4. Other 700.00 124.00 0.00 17.71% 10. Legislative Total 168,101.37 66,370.10 11,682.85 39.48%